1 Day Business Event but Stayed 15 days

[AZ-Tax]

TP attended 1 day business event but stayed 15 days. Remaining 14 days spent vacationing. TP had to go to event therefore shouldn't the Airfare, 2 nights at hotel and transportation to and from airport be 100% business related?

[TAXNJ]

What did you find?

TP attended 1 day business event but stayed 15 days. Remaining 14 days spent vacationing. TP had to go to event therefore shouldn't the Airfare, 2 nights at hotel and transportation to and from airport be 100% business related?

Have you tried this?

http://www.irs.gov/pub/irs-pdf/p463.pdf PAGES 5-7 (not limited to these pages)

[mastertaxguy]

Business vs. Non Business Travel

1. Might want to take a look at TTB Pp. 8-11, right column, paragraph heading Business or Personal.
2. One might argue, especially if the amount was significant and "one" worked for IRS, that the scenario you describe is primarily personal travel expense with incidental, but deductible, business meeting expenses.

[TAXNJ]

Agree

1. Might want to take a look at TTB Pp. 8-11, right column, paragraph heading Business or Personal.
2. One might argue, especially if the amount was significant and "one" worked for IRS, that the scenario you describe is primarily personal travel expense with incidental, but deductible, business meeting expenses.

Yes, that is consistent with Publication 463 referenced.

[DonB]

Wasn't there once a more than 50% of time spent for business rule to determine if travel costs were 100% deductible?

[TAXNJ]

Probably

Wasn't there once a more than 50% of time spent for business rule to determine if travel costs were 100% deductible?

There once was a time one paid lower tax rates. As you know the tax laws are always changing.

[taxea]

TJ "Always cite your source for support to defend your opinion" just a comment...I intentionally don't site my source because I want the asker to do their own research rather than relying on my expertise. I believe that the best way to get the correct answer is to go to the source of the information, not rely on others for a definitive answer out of laziness.
My posts answers are meant to make people think. I find that many of the questions could be self-answered if the poster would 1. do the research or 2. reason out the question.
My answers are based on my training, research and experience. I am more than willing to help someone with something more complicated than they have faced before and truly appreciate the help of anyone who has the knowledge I don't but, I still think that the best way to learn is not to rely on others to provide the answers to the most basic of questions when we should already have the answer based on our basic training.

[TAXNJ]

Believe

TJ "Always cite your source for support to defend your opinion" just a comment...I intentionally don't site my source because I want the asker to do their own research rather than relying on my expertise. I believe that the best way to get the correct answer is to go to the source of the information, not rely on others for a definitive answer out of laziness.
My posts answers are meant to make people think. I find that many of the questions could be self-answered if the poster would 1. do the research or 2. reason out the question.
My answers are based on my training, research and experience. I am more than willing to help someone with something more complicated than they have faced before and truly appreciate the help of anyone who has the knowledge I don't but, I still think that the best way to learn is not to rely on others to provide the answers to the most basic of questions when we should already have the answer based on our basic training.

Agree as you say "Believe nothing until you know where and how to verify it." Well stated post

[JohnH]

I hold a slightly different view. I'll offer an opinion or suggestion based on what I remember (or think I remember) about a particular issue. I'm willing to put it out there for others to support, criticize, or outright disagree with. I learn more personally from the disagreeing replies, but that's just the nature of learning. If I'm wrong I want to know it.

This is an open forum and I assume nobody would actually accept what I say without some sort of corroboration. That might be common sense, confirmation from others, or their own research. I'm not positioning myself as the final authority on any answer I provide, and anyone accepting it as such is doing so at their own risk. If I happen to have a cite handy I'll provide it, but more often that not I just shoot from the hip - don't need no stinkin' cite.

[TAXNJ]

Free

I hold a slightly different view. I'll offer an opinion or suggestion based on what I remember (or think I remember) about a particular issue. I'm willing to put it out there for others to support, criticize, or outright disagree with. I learn more personally from the disagreeing replies, but that's just the nature of learning. If I'm wrong I want to know it.

This is an open forum and I assume nobody would actually accept what I say without some sort of corroboration. That might be common sense, confirmation from others, or their own research. I'm not positioning myself as the final authority on any answer I provide, and anyone accepting it as such is doing so at their own risk. If I happen to have a cite handy I'll provide it, but more often that not I just shoot from the hip - don't need no stinkin' cite.

Yes, this free site provides a valuable tool for many related to tax issues offering suggestions, comments, etc. and not the final authority as you rightly mentioned.

Also, you can have a favorite quote, e.g., mine relates to the preparation in support of tax returns which a former Tax Instructor stated "always cite your source for support ....." years ago to the students. Very valuable reminder for the students studying taxation.

Your quote from Mr. Buffet is not "stinkin" but interesting. It is interesting and good reading reports on his companies utilizing great tax strategies to legally owe less tax.

[JohnH]

Yes, Warren Buffett has produced so many quotable comments. Sometimes it's hard to choose just one. I admire his overall business acumen and his tax-efficient methods of operating Berkshire Hathaway. One of the most tax-efficient strategies he employs is refusing to pay dividends. By avoiding this shell game, he enables his shareholders to manage their tax costs to suit their individual circumstances. Unlike managed mutual fund operators, virtually all of whom waste a tremendous amount of their shareholders' wealth, he focuses strictly on long-term value. BH is the only private company I'm aware of which mimics a broad-based index fund in its tax efficiency and rock-bottom costs.

A person could study & follow only what Warren Buffet and John Bogle say about investing, and retire with significantly more wealth than they would otherwise have. Virtually everything else out there is nothing but noise.

[Kram BergGold]

Back to the ?

To me this is a personal trip with 1 day of business. I would not deduct any airfare and 1 or 2 nights hotel and meals depending upon how far he had to travel.

[Lion]

Agree. Personal trip expenses mostly. But, the additional expenses due to that one-day of business -- extra night(s) hotel, business meals, taxi to event, anything specific to attending the business event -- properly documented could be business expenses. Only the items that would not have happened during his vacation if not for the one-day business event. No airfare, airport transportation, family expenses, etc., as they were due to his vacation.

[TAXNJ]

Travel

Agree. Personal trip expenses mostly. But, the additional expenses due to that one-day of business -- extra night(s) hotel, business meals, taxi to event, anything specific to attending the business event -- properly documented could be business expenses. Only the items that would not have happened during his vacation if not for the one-day business event. No airfare, airport transportation, family expenses, etc., as they were due to his vacation.

Interesting original post. In order to get to the business event, the client would have to incur travel expense, though personal trip expenses mostly. So would a portion of the travel expenses be for business?

Again, interesting original post.

[New York Enrolled Agent]

Interesting original post. In order to get to the business event, the client would have to incur travel expense, though personal trip expenses mostly. So would a portion of the travel expenses be for business?

Again, interesting original post.

Agree with Kram and Lion

You appear to be interested in a cite.

Reg §1.162-2 reads in part:

(b)(1) If a taxpayer travels to a destination and while at such destination engages in both business and personal activities, traveling expenses to and from such destination are deductible only if the trip is related primarily to the taxpayer's trade or business. If the trip is primarily personal in nature, the traveling expenses to and from the destination are not deductible even though the taxpayer engages in business activities while at such destination. However, expenses while at the destination which are properly allocable to the taxpayer's trade or business are deductible even though the traveling expenses to and from the destination are not deductible.


(2) Whether a trip is related primarily to the taxpayer's trade or business or is primarily personal in nature depends on the facts and circumstances in each case. The amount of time during the period of the trip which is spent on personal activity compared to the amount of time spent on activities directly relating to the taxpayer's trade or business is an important factor in determining whether the trip is primarily personal. If, for example, a taxpayer spends one week while at a destination on activities which are directly related to his trade or business and subsequently spends an additional five weeks for vacation or other personal activities, the trip will be considered primarily personal in nature in the absence of a clear showing to the contrary.